Money Grows on Trees

I really don’t understand our country’s financial system. But I do know one thing: I wish mine worked the same way.

Just think, I could get a bunch of credit cards, use them on things I can’t afford, and hell, don’t even really need! Once I have maxed them out, I can just raise the limit to whatever I want! I never have to worry about paying the cards back! I can just spend and spend!

This is what America does. This article mentions the dire consequences if we do not raise our debt limit by August 2. America could lose its amazing AAA credit rating! You know what, perhaps America’s credit rating should reflect its credit habits, as it does for every American citizen. If you take on a lot of debt that you can’t pay back, your credit deserves to go down the toilet.

The answer here isn’t to raise the limit. The answer is to live within your means. If you are not doing this, you have two fool-proof plans to start: 1.) reduce spending, or 2.) increase income. You can even combine the two! It’s finance magic!

So, a letter:

Dear Federal Government,

Stop spending money you don’t have. Either cut it out of the budget, or raise taxes to pay for it. You are embarrassing yourself, and me by proxy. (Personally, I feel as though you’ve taken too many liberties with how you are allowed to spend Americans’ money and would prefer you cut more out rather than increase taxes, but at this point, either would be a better solution than raising your debt limit.)

I would also recommend Dave Ramsey’s book, The Total Money Makeover. A lot of good tips in there for budget planning and paying off debt. I will happily send you a copy as a gift.

I don’t know whether my stance on this issue makes me side more with Republicans or Democrats (and I don’t care). I just know it makes me smart.